The Deen's List Vol.2 #255

The Deen's List^TM

A service of Deen Capital Management, Inc. (www.deencapital.com)

Vol.2 #255 Thursday, November 4, 2004 9:59AM ET

Please read carefully our disclaimers at the end of this newsletter.

Market Stance: BULLISH (since August 18, 2004)

Contents

Year-To-Date Performance
Sold Ditech Communications Corp. (DITC)
Open Positions
Subscription Information
Privacy Policy
Disclaimers

Year-To-Date Performance

Year-To-Date as of November 3, 2004
Deen Capital	-2.6%	*
S&P 500	+2.8%

* An average of managed accounts, net after commissions and fees. Individual account results may vary. See also www.deencapital.com/perform.htm. For information on managed accounts, see www.deencapital.com/mgdaccts.htm.

Sold Ditech Communications Corp. (DITC)

Net sell price in managed accounts* $15.07

Date(s) bought Nov 3 2004

Net buy price in managed accounts* $22.75

Holding period 0.1 weeks

Gain/loss in managed accounts -33.7% (after commissions)

* The net buy (sell) price is the total net cost (proceeds) after commissions for all managed accounts divided by the total number of shares.

I stepped on a land mine here. Just hours after I bought this stock, the company came out with a press release indicating that revenue for the second and third fiscal quarters (ending Oct 31 and Jan 31, respectively) will be lower than previously thought.

This was not an official earnings announcement. It was an earnings warning.

The company cited "a delay in shipping a major VQA order in the quarter to an Asian customer" and, perhaps more significantly, "an apparent softening of demand [for the company's products] in the North American wireless marketplace".

The stock immediately dropped some 30 percent yesterday in after-hours trading. I sold all shares this morning at the opening bell. I had been expecting an upside surprise on revenues and earnings for this quarter. I was wrong.

-KD, November 4, 2004

Open Positions

Company Name Stock
Symbol Buy
Date NetBuy
Price* Current
Price** Weeks
Held Gain
(Loss)

NETGEAR, Inc. NTGR 11/03/04 $13.68 $13.75 0.1 +0.5%

Nanometrics Inc. NANO 11/02/04 $14.71 $14.53 0.3 -1.3%

Ctrip.com International CTRP 11/01/04 $41.21 $44.17 0.4 +7.2%

MarketWatch Inc. MKTW 10/29/04 $13.33 $15.24 0.9 +14.3%

MarketWatch Inc. MKTW 10/28/04 $14.01 $15.24 1.0 +8.8%

MicroStrategy Inc. MSTR 10/27/04 $63.30 $61.98 1.1 -2.1%

Monarch Casino & Resort MCRI 10/27/04 $27.11 $29.37 1.1 +8.3%

F5 Networks Inc. FFIV 10/27/04 $40.08 $41.13 1.1 +2.6%

LCA Vision Inc. LCAV 10/26/04 $27.58 $30.38 1.3 +10.1%

InfoSpace Inc. INSP 10/26/04 $53.99 $52.53 1.3 -2.7%

Carpenter Technology Corp. CRS 10/26/04 $48.51 $50.15 1.3 +3.4%

Navarre Corp. NAVR 10/22/04 $14.99 $14.99 1.9 -0.0%

Sigmatel Inc. SGTL 10/21/04 $28.28 $29.27 2.0 +3.5%

Amedisys Inc. AMED 10/21/04 $31.28 $33.98 2.0 +8.6%

Diodes Inc. DIOD 10/19/04 $25.65 $27.40 2.3 +6.8%

M.D.C Holdings Inc. MDC 10/12/04 $72.28 $77.64 3.3 +7.4%

Charles River Assoc Inc. CRAI 09/30/04 $38.19 $41.07 5.0 +7.5%

Quiksilver Inc. ZQK 09/13/04 $25.73 $27.20 7.4 +5.7%

Digital River Inc. DRIV 09/13/04 $27.42 $31.43 7.4 +14.6%
Average 2.2 +5.4%

* Net buy prices shown are the total net purchase cost after commissions for all managed accounts divided by the total number of shares.

** Current prices are at least 20 minutes old.

Subscription Information

Welcome to The Deen's List^TM, an e-mail stock newsletter from Deen Capital Management, Inc.

My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter.

Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line.

This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties.

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Disclaimers

All stocks discussed in The Deen's List^TM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's List^TM or purchased by Deen Capital Management, Inc. will be profitable.

Past performance is not necessarily indicative of future results.

The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness.

Ken Deen
Deen Capital Management, Inc.
PO Box 30925
Santa Barbara, CA 93130
(805) 682-1870
deenslist@deencapital.com